Abstract :
This research objective is to know the best financial distress predictor in textile and garment companies which used financial statement analysis. There are three famous bankruptcy predictors that used financial ratio analysis which are The Altman Model, The Foster Model and The Springate Model. This research uses these three models to predict financial distress. This research took 9 samples of textile and garment companies which are indicated as financial distress for the year 2005 ? 2007, and to have a good comparison this research also took 8 number of non financial distress companies which are in the same category. This research uses logistic regression. This research found that The Altman Model is the best financial distress predictor, followed by The Springate Model. The Foster Model could not predict financial distress better than the other two models
Keyword: Financial Distress, The Altman Model, The Foster Model, The Springate Model